SALT LAKE CITY, June 10, 2004 (PRIMEZONE) -- ARKONA Inc. (OTCBB:ARKN), the emerging leader in web-enabled dealer management solutions for the automobile and powersports dealerships, today announced record revenues for its fiscal fourth quarter & fiscal year 2004. For the fiscal year ending March 31, 2004, revenues were $5,365,353 on net profits of $397,499, as compared to revenues of $3,063,271 and a net loss of ($1,520,933) for the previous year. For its fourth quarter, the company reported earnings of $27,337 on revenues of $1,732,675, as compared to a loss of ($344,202) on revenues of $702,598 for the same period last year.
"The significant growth in revenues is a continued validation from the dealer industry that ARKONA and the Internet are being embraced to increase productivity and substantially lower the cost of technology ownership," said Alan Rudd, Chairman & Chief Executive Officer. "Our research and development organization continues to make remarkable strides in scaling our technology to satisfy the needs of customers of every size. Despite an economic environment fraught with uncertainty and apprehension, we expect demand for ARKONA products to remain strong during FY2005."
A significant achievement for the company this past year has been the integration and enhancement of ARKONA's web-based platform with key automobile manufacturers including General Motors, Daimler-Chrysler, Ford, Honda, Lincoln Mercury, Mazda, Acura, Suzuki and Mitsubishi. ARKONA continues to devote significant development resources in this area and anticipates further integration announcements.
In addition to record gains in revenues and earnings, the recently concluded fiscal year saw significant enhancements to ARKONA's balance sheet.
"In FY2004, ARKONA's balance sheet underwent a significant transformation," said Stephen L. Russo, Vice President and Chief Financial Officer. "The company increased total assets by nearly 300% to just over $1,800,000, while virtually eliminating its long-term debt. At fiscal year end, current liabilities were less than $500,000 while current assets increased to more than $900,000, with cash in excess of $350,000. These are extreme achievements in a relatively short period of time."
The numbers released by the company are audited numbers. ARKONA will release its 10K report on or before June 30, 2004.
About ARKONA Inc.
ARKONA was the first to offer a true Application Services Provider (ASP) solution for the automotive industry and continues to be a market leader in providing innovative e-business solutions for automobile dealers. A public company, ARKONA was founded in 1996 and trades under the symbol ARKN. For more information visit ARKONA's Web site at www.arkona.com.
This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve known or unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.